Organizational Theory

"Without competitors there would be no need for strategy, for the sole purpose of strategic planning is to enable the company to gain, as efficiently as possible, a sustainable edge over its competitors. Corporate strategy, thus, implies an attempt to alter a company's strength relative to that of its competitors in the most efficient way."

"Social organizations are flagrantly open systems in that the input of energies and the conversion of output into further energy input consists of transactions between the organization and its environment."

"Do the tendencies of the present day, , social organization, publicity, , emphasize the unique in man, or enhance the dominance of undifferentiated man acting as mass"

"The economic system is, in effect, a mere function of social organization."

"Strategy is about stretching limited resources to fit ambitious aspirations."

"Any social organization does well enough if it isn't rigid. The framework doesn't matter as long as there is enough looseness to permit that one man in a multitude to display his genius. Most so-called social scientists seem to think that organization is everything. It is almost nothing — except when it is a straitjacket. It is the incidence of heroes that counts, not the pattern of zeros."

"Today we have great laboratories and individual research projects employing thousands of [[scientists], but the interrelation between these giant laboratories, and between them and the myriad of individual investigators, is still one of voluntary, and almost unconscious, co-operation. It is not based on central planning or hierarchic organization. But as any economist knows, the fact that there is no one who can give commands does not mean that there is no social organization."

"Education will enable young people quickly to familiarize themselves with the whole system of production and to pass from one branch of production to another in response to the needs of society or their own inclinations. It will, therefore, free them from the one-sided character which the present-day division of labor impresses upon every individual. Communist society will, in this way, make it possible for its members to put their comprehensively developed faculties to full use. But, when this happens, classes will necessarily disappear. It follows that society organized on a communist basis is incompatible with the existence of classes on the one hand, and that the very building of such a society provides the means of abolishing class differences on the other."

"Some propose mere welfare measures – while others come forward with grandiose systems of reform which, under the pretense of re-organizing society, are in fact intended to preserve the foundations, and hence the life, of existing society. Communists must unremittingly struggle against these bourgeois socialists because they work for the enemies of communists and protect the society which communists aim to overthrow."

"Group organization is to be the new , the basis of our future , the foundation of . Group organization will create the new world we are now blindly feeling after, for creative force comes from the group, creative power is evolved through the activity of the group life."

"Big industry, competition and generally the individualistic organization of production have become a fetter which it must and will shatter. ... It makes unavoidably necessary an entirely new organization of society in which production is no longer directed by mutually competing individual industrialists but rather by the whole society operating according to a definite plan and taking account of the needs of all."

"The number of levels of authority in the management hierarchy increased with technical complexity, while the span of control of the first-line supervisor decreased."

"knowledgeably and actively use, interpret and implement . They also creatively reform and transform them. In such ways they bring about institutional innovation and transformation and shape the ‘deep structures’ of society."

"Markets are social organizations, structured and regulated by more or less well-defined social rule systems."

"The group process contains the secret of life, it is the key to democracy, it is the master lesson for every individual to learn, it is our chief hope or the political, the social, the international life of the future."

"The purposes of functional charts is"

"If a man divides the whole of his work into two branches and delegates his responsibility, freely and properly, to two experienced heads of branches he will not have enough to do. The occasions when they would have to refer to him would be too few to keep him fully occupied. If he delegates to three heads he will be kept fairly busy whilst six heads of branches will give most bosses a ten hours' day. Those data are the results of centuries of the experiences of soldiers."

"Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization — hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. — comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior."

"The basic problem of social organization is how to co-ordinate the economic activities of large numbers of people."

"There is nothing which rots morale more quickly and more completely than poor communication and indecisiveness - the feeling that those in authority do not know their own minds. And there is no condition which more quickly produces a sense of indecision among subordinates or more effectively hampers communication than being responsible to a superior who has too wide a span of control."

"The liberal conceives of men as imperfect beings. He regards the problem of social organization to be as much a negative problem of preventing "bad" people from doing harm as of enabling "good" people to do good; and, of course, "bad" and "good"people may be the same people, depending on who is judging them."

"Coal being then the chief source of power, much industrial reconstruction depended on there being a plentiful and cheap supply. But the newly nationalized industry was not doing well. Productivity failed to increase in step with increases in mechanization."

"Suppose that, at a given moment, a certain number of people are engaged in the manufacture of pins. They make as many pins as the world needs, working (say) eight hours a day. Someone makes an invention by which the same number of men can make twice as many pins: pins are already so cheap that hardly any more will be bought at a lower price. In a sensible world, everybody concerned in the manufacturing of pins would take to working four hours instead of eight, and everything else would go on as before. But in the actual world this would be thought demoralizing. The men still work eight hours, there are too many pins, some employers go bankrupt, and half the men previously concerned in making pins are thrown out of work. There is, in the end, just as much leisure as on the other plan, but half the men are totally idle while half are still overworked. In this way, it is insured that the unavoidable leisure shall cause misery all round instead of being a universal source of happiness."

"The reality is that business and investment spending are the true leading indicators of the economy and the stock market. If you want to know where the stock market is headed, forget about consumer spending and retail sales figures. Look to business spending, price inflation, interest rates, and productivity gains."

"A solid working knowledge of productivity software and other IT tools has become a basic foundation for success in virtually any career. Beyond that, however, I don't think you can overemphasise the importance of having a good background in maths and science."

"Modernized poverty appears when the intensity of market dependence reaches a certain threshold. Subjectively, it is the experience of frustrating affluence which occurs in persons mutilated by their overwhelming reliance on the riches of industrial productivity. Simply, it deprives those affected by it of their freedom and power to act autonomously, to live creatively; it confines them to survival through being plugged into market relations."

"The skills and productivity of American Workers, not to mention the taxes they pay, are the greatest economic resource our country has. To condemn large numbers of them to unemployment, to deprive the Treasury of their tax contributions and to force them to live on unemployment at public expense is the most expensive luxury any society ever chose to buy."

"The free market system is implied, Hayek felt, by his ontology in order to attain maximum human productivity, the highest standard of living for all—the utilitarian-liberal-socialist-communist-libertarian goal. The division and paucity of individual knowledge renders a market economy necessary for optimal economic productivity. The utilization and communication of information and knowledge are critical."

"Relational processing entails treating whole relationships as operands. Its primary purpose is loop-avoidance, an absolute requirement for end users to be productive at all, and a clear productivity booster for application programmers."

"In Europe and in America, people are now more interested in the cost of quality and in systems of quality-audit. But in Japan, we are keeping very strong interest to improve quality by use of methods which you started....when we improve quality we also improve productivity, just as you told us in 1950 would happen."

"Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs."

"But when we come to the fundamental point—and this is the one you are getting at—it is very simply this: Unless the United States is prepared to build a wall around itself, we have to compete with other nations in the world. Now in order to compete with other nations in the world, we, who pay by far the highest wages in the world, have to be more productive than other people in the world, and that means that we can't afford work stoppages that are too long."

"The unremitting division of labour resulted in admirable levels of productivity. The company’s success appeared to bear out the principles of efficiency laid down at the turn of the twentieth century by the Italian economist Vilfredo Pareto, who theorized that a society would grow wealthy to the extent that its members forfeited general knowledge in favour of fostering individual ability in narrowly constricted fields. In an ideal Paretan economy, jobs would be ever more finely subdivided to allow for the accumulation of complex skills, which would then be traded among workers. … But however great the economic advantages of segmenting the elements of an afternoon’s work into a range of forty-year-long careers, there was reason to wonder about the unintended side effects of doing so. In particular, one felt tempted to ask … how meaningful the lives might feel as a result."

"In the industrial mode of development, the main source of productivity lies in the introduction of new energy sources, and in the ability to decentralize the use of energy throughout the production of circulation processes. In the new informational mode of development the source of productivity lies in the technology of knowledge generation, information processing and symbolic … what is specific to the informational mode of development is the action of knowledge upon knowledge itself as the main source of productivity... in a virtuous circle of interaction"

"Multi-unit business enterprise replaced small traditional enterprise when administrative coordination permitted greater productivity, lower costs, and higher profits than coordination by market mechanisms."

"The adverse impact on development productivity of requiring programmers to navigate along access paths to reach target data [...] was enormous. In addition, it was not possible to make slight changes in the layout in storage without simultaneously having to revise all programs that relied on the previous structure. [...] As a result, far too much manpower was being invested in continual (and avoidable) maintenance of application programs."

"As a result of this continuous improvement of productivity through the division of labor and technical advancement, one hour's labor today is worth about 25 times more than it was in the mid-19th century [....] Growth and productivity alone are capable of raising real wages in the long run."

"Coal being then the chief source of power, much industrial reconstruction depended on there being a plentiful and cheap supply. But the newly nationalized industry was not doing well. Productivity failed to increase in step with increases in mechanization. Men were leaving the mines in large numbers for more attractive opportunities in the factories. Among those who remained, absenteeism averaged 20 percent. Labor disputes were frequent despite improved conditions of employment. Some time earlier the National Coal Board had asked the Institute to make a comparative study of a high producing, high morale mine and a low producing, low morale, but otherwise equivalent mine."

"Paul wondered at what thorough believers in mechanization most Americans were, even when their lives had been badly damaged by mechanization."

"We conceive the prominent element in present-day industrial management to be: the mental attitude that consciously applies the transference of skill to all the activities of industry. Here emphasis is placed upon the word all, for the restricted application of this principle to machines and tools has been highly developed for a long period. But its conscious application in a broad way to the production departments, and particularly to the workmen, we believe has been made during the last quarter of a century."

"Every machine is constructed for the purpose of performing certain mechanical operations, each of which supposes the existence of two other things besides the machine in question, namely, a moving power, and an object subject to the operation, which may be termed the work to be done. Machines, in fact, are interposed between the power and the work, for the purpose of adapting the one to the other."

"Mechanisation leads to the decay of taste, the decay of taste leads to demand for machine-made articles and hence to more mechanisation, and so a vicious circle is established."

"Transference of skill, when considered with reference to the industrial revolution and the introduction of machinery, might easily be interpreted to mean the transference of skill from the workman to the machine. What actually happened was that the machine brought to the aid of the workmen some of the vast forces of nature; and in addition it superseded the skill of the hand worker. That this was a distinct loss to the hand worker who was unable to adjust himself to the new conditions is incontestable in the face of economic history; and the sad record of the change is a solenm warning to present day managers to take every step possible to make the adjustment to new methods of management as easy and gradual as possible. The machine developed a new kind of skill on the part of the operator; but now it is a minute skill easily acquired and subject to sudden loss with the change in the design of the machine."

"Mediocrity serves it best because mechanization best serves the mediocre."

"There is considerable danger that psychoanalysis, as well as other forms of psychotherapy and adjustment psychology, will become new representations of the fragmentation of man, that they will exemplify the loss of the individual's vitality and significance, rather than the reverse, that the new techniques will assist in standardizing and giving cultural sanction to man's alienation from himself rather than solving it, that they will become expressions of the new mechanization of man."

"Besides black art, there is only automation and mechanization."

"Typography as the first mechanization of a handicraft is itself the perfect instance not of a new knowledge, but of applied knowledge."

"If the individual were no longer compelled to prove himself on the market, as a free economic subject, the disappearance of this kind of freedom would be one of the greatest achievements of civilization. The technological processes of mechanization and standardization might release individual energy into a yet uncharted realm of freedom beyond necessity. The very structure of human existence would be altered; the individual would be liberated from the work world's imposing upon him alien needs and alien possibilities. The individual would be free to exert autonomy over a life that would be his own."

"'How can you [accept] exploitation?' 'How can you like the complete mechanization of work?' 'How can you like bad art?' I have to answer that I accept it as being there, in the world."

"The Mechanisation of Industry."